Luxury housing demand surges as affordable segment shrinks in NCR
While the affordable housing market appears to be in a recession, the luxury residential market is booming in NCR, with a year-over-year increase in its share. This conclusion is made from the most recent analysis by real estate consultant Anarock, which revealed that in the first half of the year, luxury home market in NCR reached close to 12%, an increase of about 100% from 6% in 2021. The percentage of luxury housing in NCR cities in 2019 was only about 4%.
Together, the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) offer 19,470 luxury apartments for sale. Additionally, 4,160 units in this market sector were sold in these two cities in the first half of 2022, according to Anarock. The research states that around 14% (25,700 units) of the 1,84,00 units sold in these locations in the first half of this year were luxury residences. In contrast, only 7% (17,740 units) of the 2.61 lakh units sold overall in 2019 fell into the luxury category.
Gurugram’s developers attributed increase in the market share of luxury housing post-covid because of increase in desire for larger residences. The expansion of the luxury real estate market in India must be viewed in light of the potential it offers for the expansion of the economy in the post-Covid phase, according to Kalyan Chakrabarti, CEO of Emaar India. The strong demand is supported by macroeconomic growth factors, a change in the pattern of the real estate market, and structural changes in demand drivers following Covid.
“Homebuyers have picked this category as it exemplifies the concept of luxury living giving the ultimatelifestyle, outstanding comfort and services, catering to the developed taste of HNI’s and entrepreneurs.”, said Amarjit Bakshi, CMD of Central Park.